[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2636 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2636
To authorize depository institutions, depository institution holding
companies, Fannie Mae, and Freddie Mac to lease foreclosed property
held by such entities for up to 5 years, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2011
Mr. Gary G. Miller of California (for himself, Mr. Bachus, Mrs.
McCarthy of New York, and Mr. Frank of Massachusetts) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To authorize depository institutions, depository institution holding
companies, Fannie Mae, and Freddie Mac to lease foreclosed property
held by such entities for up to 5 years, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Neighborhood Preservation Act of
2011''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) Depository institutions and affiliates of depository
institutions currently may control and lease foreclosed
property for a limited period of time often subject to safety
and soundness considerations, under various Federal laws and
the law of some States.
(2) Authorizing such institutions, the GSEs, and affiliates
to enter into a long-term lease with the occupant of the
property or any other person would reduce the number of
residential properties entering into the housing inventory,
which in turn would help to stabilize home values and restore
confidence in the housing markets.
(3) Allowing depository institutions, the GSEs, and
affiliates of such institutions to lease foreclosed property
will allow the institution or affiliate to dispose of such
property into a presumably more stable market at the end of the
lease term which would reduce the loss the institution or
affiliate may otherwise be required to recognize upon
disposition of the property.
(4) Providing a means for foreclosed property to remain
occupied during the housing downturn will preserve the property
itself as well as the aesthetic and economic values of
neighboring homes and even whole neighborhoods.
SEC. 3. BANK LEASING OF FORECLOSED PROPERTIES.
(a) In General.--Section 18 of the Federal Deposit Insurance Act
(12 U.S.C. 1828) is amended by adding at the end the following new
subsection:
``(y) Leasing of Foreclosed Property.--
``(1) Leasing authorized.--Notwithstanding any provision of
Federal or State law restricting the time during which a
depository institution, or any affiliate of a depository
institution, may hold or lease property, or any provision of
Federal or State law prohibiting a depository institution, or
any affiliate of a depository institution, from leasing
property and subject to this subsection and regulations
prescribed under this subsection, any depository institution,
and any affiliate of a depository institution, may lease to any
individual, including a lease with an option to purchase, for
not to exceed 5 years an interest in residential property
which--
``(A) was or is security for an extension of credit
by such depository institution or affiliate; and
``(B) came under the ownership or control of the
depository institution or affiliate through
foreclosure, or a deed in lieu of foreclosure, on the
extension of credit.
``(2) Safety and soundness regulations.--The Federal
banking agencies shall jointly prescribe regulations which--
``(A) establish criteria and minimum requirements
for the leasing activity of any depository institution
or affiliate of a depository institution, including
minimum capital requirements, that the agency
determines to be appropriate for the preservation of
the safety and soundness of the institution or
affiliate;
``(B) establish requirements or exceptions that the
agency determines are appropriate under this subsection
for any such institution or affiliate for any other
purpose; and
``(C) provide for appropriate actions under section
38 with respect to any such lease if necessary to
protect the capital or safety and soundness of the
institution or affiliate or any other necessary
enforcement action.
``(3) Length of lease.--If any provision of any Federal or
State law, including the Bank Holding Company Act of 1956,
governing the permissible activities of depository institutions
or affiliates of depository institutions permits a depository
institution or any such affiliate to hold property as described
in paragraph (1) for a period longer than 5 years, any lease
under paragraph (1) may be extended to the extent permitted by
such provision of law.
``(4) Sunset.--This section shall apply only with respect
to leases entered into during the 3-year period beginning on
the date of the enactment of the Neighborhood Preservation
Act.''.
(b) Intent of the Congress.--It is the intent of the Congress
that--
(1) no permanent change in policy on leasing foreclosed
property is being established with respect to depository
institutions and depository institution holding companies; and
(2) subsection (y) of section 18 of the Federal Deposit
Insurance Act should not apply to leases entered into after the
sunset date contained in such subsection.
SEC. 4. GOVERNMENT SPONSORED ENTERPRISE LEASING OF FORECLOSED
PROPERTIES.
(a) In General.--For the purpose of mitigating losses to the
taxpayer and stabilizing home prices, an enterprise may market for
rental any real estate owned properties and assets of such enterprises
and enter into lease agreements with lessees as the Federal Housing
Finance Agency determines appropriate, prior to the sale of such
properties and assets, except that any such lease agreement shall be no
greater than 5 years. Authority to enter into leasing agreements
pursuant to this subsection shall terminate 3 years after the date of
the enactment of this Act.
(b) Enterprise Defined.--The term ``enterprise'' means--
(1) the Federal National Mortgage Association; and
(2) the Federal Home Loan Mortgage Corporation.
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